Pepe coin price continues to face hardships as Ethereum price struggles to break above key resistance levels. Pepe coin has a strong correlation with Ethereum. While the meme coin dropped 6.5% in the last 24 hours, Ethereum slid 5.6% in the same duration, hampering the growth of PEPE price.
The slump in the Ethereum price could be due to a dormant whale waking up and dumping coins on the market, further complicating the Ethereum price rally to $4K, which is already at risk amid division talks surrounding the upcoming Pectra upgrade.
$38M ETH at Risk Could Negatively Impact Pepe Coin Price
A huge Ethereum whale that has been dormant for eight years is awakening. Spot Onchain detected moving its large ETH holdings, potentially positioning to sell.
The whale potentially bought 16,636 ETH at sub-5 prices and, in 2016, transferred them out of the ShapeShift exchange. The Ether price was valued at $87,136 on the transfer day, around $5.24 per ETH. The whale has held until today, accruing a total profit of 436X (43,600%) in less than ten years.
The large investors have moved the portfolio, worth over $37.1 million at current prices, to a new address, “0xe3e”.
The market is cautious about the next movement, as a large whale dump could impact the value of Ethereum and Pepe coins.
Correlation With Ethereum Is A Bearish Indicator
According to data from IntoTheBlock, Pepe coin has a correlation coefficient of 0.81 with Ethereum, which means Pepe coin price is likely to be influenced by the value of ETH.
The chart below shows the actual price action movement of PEPE and ETH in the 4-hour time frame. The PEPE price reacts much more explosively to Ether’s movements, which could be disadvantageous for Pepe coin in the event of a sharp downturn in ETH’s value.
The PEPE price is down 6.9% in the last 24 hours and hangs on the balance as the asset is almost at the end of a bearish continuation pattern.
PEPE Price Hangs On The Balance Ahead of Potential Whale Dump
Pepe coin price is moving downward according to the well-defined descending resistance trendline on its 4-hour chart. The asset price has been downtrend since May, with no major trend reversal signals yet. Additionally, the asset is almost at the end of a descending triangle, a bearish continuation pattern.
PEPE has a strong support zone visible between $0.00000600 and $0.00000700, and resistance on the other side is near 0.00000800. A breakout above this trendline would signal a potential reversal from the bearish trend.
If the price of PEPE breaks and holds above the descending trendline, entering a long position as the value could surge to $0.000001000 or even $0.000001200 and $0.000001700.
Frequently Asked Questions (FAQs)
Pepe Coin has a correlation coefficient of 0.81 with Ethereum, meaning the price of PEPE tends to move in the same direction as Ethereum. If Ethereum’s price drops, PEPE is likely to drop as well, often more dramatically.
A dormant Ethereum whale holding 16,636 ETH (valued at $38 million) has recently moved their holdings, potentially positioning to sell. If the whale decides to dump their Ethereum, it could lead to a sharp decline in Ethereum price, which would also negatively impact Pepe Coin due to their correlation.
For PEPE to rebound, Ethereum would need to stabilize or rise in price, and PEPE would have to break above its descending trendline. Additionally, avoiding a massive ETH sell-off by the whale would reduce the immediate risk of a sharp price drop.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/can-pepe-coin-price-survive-a-38m-dormant-whale-dumping-eth/
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